The franchisor is Little Caesar Enterprises, Inc. Little Caesars restaurants commonly are carryout-only restaurants, sometimes drive-thru windows also available. In Little Caesars restaurants we serve pizza, Crazy Bread products, chicken wings, and other related products. Currently the franchisor offers a single restaurant franchise and territory reservation agreement. The territory reservation agreement allows the franchisee to acquire territory for the potential development of several Little Caesars restaurant franchises.
Franchisees need successfully complete the training program before they open the restaurant. If franchisees are a corporation, limited liability company, or other entity that must be principal approved by the franchisor. The franchisor requires that only one person from each restaurant must get the training and that must be the franchisee (or principal approved by the franchisor) but the franchisor also may require employees to attend the training.
The duration of the program is about eight weeks but it can be changed at any time. Franchisees who are new to the brand must also complete a two-day real estate/architectural/equipment training program and a two-day on-the-job evaluation in one of the franchisor’s restaurants. These two training must be completed before starting the training program.
The franchisor provides food safety certification as part of the eight-week initial training. At the moment, the franchisor offers the National Restaurant Association ServSafe program. Initial training takes place at headquarters and company-owned restaurants in Detroit, Michigan.
Training includes both formal on-the-job training in certified training restaurants and classroom instruction. Franchisees or their approved representative, at their expense, must be present at all obligatory meetings, seminars, and conferences, including meetings related to new products or product preparation procedures, new operations procedures or programs, restaurant management, sales or sales promotion, financial management, regional and national meetings, or other related topics and annual conferences.
Territory Granted: The franchisee can operate the restaurant placed only at the location written in The Franchise Agreement. The Franchise Agreement also generally defines a territory where the franchisor cannot operate or sell for franchise business under its trade mark and system.
The Protected Territory is generally defined as a one-mile radius territory of the Approved Location. However, under certain circumstances like a densely populated urban area, the Protected Territory may be reduced (a distance of ½ mile or less) or not be granted. Approved Location in any of the five boroughs of the City of New York, New York won’t be granted a Protected Territory.
Obligations and Restrictions: The franchisee (or representative approved by the franchisor) must devote its best effort and full time to the daily operation of the restaurant. If a franchisee has more than one restaurant, they must continue to personally supervise the operation of all their restaurants.
If franchisee residents in different geographical areas or restaurants located in different areas, the franchisor must approve their on-site operator for every restaurant. It is required that on-site operators must have a minimum equity interest in the entity that operates and/or owns the restaurants they supervise. To provide the highest degree of quality and service, franchisees must run the restaurant in strict accordance with the standards, methods, and specifications in the Operational Resource Guide or standards in writing of the franchisor.
Term of Agreement and Renewal: The standard franchise term is 10 years. There is usually one renewal period of 10 years after the original period. All renewals are subject to contractual requirements.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.